Pledging Accounts Receivable as a Source of Short-Term Credit [Blank]

question 126

Multiple Choice

Pledging accounts receivable as a source of short-term credit [blank].

• A)is a type of loan secured by accounts receivable
• B)is a form of spontaneous credit
• C)involves the outright sale of accounts receivable to a financial institution
• D)is an inexpensive but risky source of short-term financing

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Definitions:

Noncollusive Oligopoly

A market structure where a few companies dominate but do not illegally agree to control prices or market share.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Elastic Demand

A market condition where the quantity demanded of a good or service significantly changes in response to a change in price.

Oligopolist X

A firm operating in an oligopoly market structure, characterized by a small number of firms dominating the market.